S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4585
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 4, 2019
                                ___________
 
 Introduced  by M. of A. SMULLEN -- read once and referred to the Commit-
   tee on Governmental Operations
 
 AN ACT to amend the state administrative procedure act, in  relation  to
   creating  the  New  York state regulatory review council and expanding
   regulatory impact statements

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision 3 of section 202-a of the state administrative
 procedure act, as amended by chapter 520 of the laws of 1992,  paragraph
 (b)  as  amended by chapter 229 of the laws of 2000 and paragraph (f) as
 amended by chapter 628 of the laws  of  1995,  is  amended  to  read  as
 follows:
   3. Each regulatory impact statement shall contain:
   (a) Statutory authority. A statement analyzing the statutory authority
 for  the  rule, including but not limited to the agency's interpretation
 of the legislative objectives of such authority;
   (b) Needs and benefits. A [statement setting  forth  the  purpose  of,
 necessity  for,  and benefits derived from the rule,] DESCRIPTION OF THE
 POTENTIAL BENEFITS OF THE RULE, INCLUDING ANY  BENEFICIAL  EFFECTS  THAT
 CANNOT  BE  QUANTIFIED IN MONETARY TERMS, THE NECESSITY OF THE RULE, THE
 IDENTIFICATION OF THOSE LIKELY TO RECEIVE THE BENEFITS THEREOF, a  cita-
 tion  for  and summary, not to exceed five hundred words, of each scien-
 tific or statistical study, report or analysis that served as the  basis
 for  the rule, an explanation of how it was used to determine the neces-
 sity for and benefits derived from the rule, and the name of the  person
 that produced each study, report or analysis;
   (c)  Costs.  A  [statement  detailing the projected costs of the rule,
 which shall indicate:
   (i) the costs for the implementation  of,  and  continuing  compliance
 with, the rule to regulated persons;

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08714-01-9
              

 A. 4585                             2

   (ii) the costs for the implementation of, and continued administration
 of,  the  rule to the agency and to the state and its local governments;
 and
   (iii)  the information, including the source or sources of such infor-
 mation, and methodology upon which the cost analysis is based; or
   (iv) where an agency finds that it cannot fully provide a statement of
 such costs, a statement setting forth its  best  estimate,  which  shall
 indicate  the  information and methodology upon which such best estimate
 is based and the reason or reasons why a complete cost statement  cannot
 be  provided]  DESCRIPTION OF THE POTENTIAL COSTS OF THE RULE, INCLUDING
 ANY ADVERSE EFFECTS THAT CANNOT BE QUANTIFIED IN MONETARY TERMS, AND THE
 IDENTIFICATION OF ALL THOSE ENTITIES LIKELY TO BEAR THE COSTS;
   (d) Paperwork. A statement  describing  the  need  for  any  reporting
 requirements,  including  forms  and  other  paperwork,  which  would be
 required as a result of the rule AND ANY FEES THE AGENCY  WOULD  REQUIRE
 TO BE PAID WITH THE FILING AND PROCESSING OF THIS PAPERWORK;
   (e)  Local  government  mandates.  A statement describing any program,
 service, duty or responsibility imposed by the  rule  upon  any  county,
 city,  town,  village,  school  district, fire district or other special
 district;
   (f) Duplication. A DETAILED statement identifying relevant  rules  and
 other legal requirements of the state and federal governments, including
 those  which  may  duplicate, overlap or conflict with the rule.  If the
 statement indicates that the rule would duplicate, overlap  or  conflict
 with  any other relevant rule or legal requirement, the statement should
 also identify all efforts which the agency  has  or  will  undertake  to
 resolve,  or  minimize  the  impact  of,  such  duplication,  overlap or
 conflict on regulated persons, including, but not  limited  to,  seeking
 waivers  of  or  exemptions from such other rules or legal requirements,
 seeking amendment of such other rules or legal requirements, or entering
 into a memorandum of understanding or other  agreement  concerning  such
 other rules or legal requirements;
   (g)  Alternative approaches. A DETAILED statement indicating [whether]
 any [significant] alternatives to the rule [were considered by the agen-
 cy], including a  DETAILED  discussion  of  such  alternatives  and  the
 reasons  why  they  were not incorporated into the rule.  IN ADDITION, A
 DESCRIPTION OF ALTERNATIVE APPROACHES THAT COULD ACHIEVE THE SAME  REGU-
 LATORY  GOAL  AT LOWER COST, TOGETHER WITH AN ANALYSIS OF SUCH POTENTIAL
 BENEFIT AND COSTS, AND A BRIEF DESCRIPTION OF THE LEGAL REASONS WHY SUCH
 ALTERNATIVES, IF PROPOSED, COULD NOT BE ADOPTED;
   (h) Federal  standards.  A  statement  identifying  whether  the  rule
 exceeds  any minimum standards of the federal government for the same or
 similar subject areas and, if so, an explanation of why the rule exceeds
 such standards; and
   (i) Compliance schedule. A statement indicating the  estimated  period
 of time necessary to enable regulated persons to achieve compliance with
 the rule.
   § 2. The state administrative procedure act is amended by adding a new
 section 208 to read as follows:
   §  208.  NEW  YORK STATE REGULATORY REVIEW COUNCIL. 1. THERE IS HEREBY
 CREATED THE "NEW YORK STATE REGULATORY REVIEW COUNCIL".   ON  AND  AFTER
 JANUARY  FIRST, TWO THOUSAND TWENTY, NO NEW RULE, UNLESS CRITICAL TO THE
 HEALTH, SAFETY AND GENERAL WELFARE OF THE PEOPLE  OF  THE  STATE,  SHALL
 BECOME  EFFECTIVE UNLESS SUCH RULE HAS BEEN APPROVED BY MAJORITY VOTE OF
 THE COUNCIL. ANY ACTION TAKEN BY THE COUNCIL SHALL BE  FINAL  AND  SHALL
 ONLY  OCCUR AFTER THE AGENCY REQUESTING THE RULE HAS HELD A PUBLIC HEAR-

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 ING AS REQUIRED PURSUANT TO SECTION TWO HUNDRED  TWO  OF  THIS  ARTICLE.
 UNDER  NO CIRCUMSTANCES, SHALL ANY RULE BE PLACED BEFORE THE COUNCIL FOR
 FINAL DETERMINATION OF APPROVAL UNLESS, (I) THE  POTENTIAL  BENEFITS  OF
 THE RULE TO SOCIETY CLEARLY OUTWEIGH THE POTENTIAL COSTS TO SOCIETY, AND
 THAT  SITUATION HAS BEEN CLEARLY IDENTIFIED BY THE COUNCIL, AND (II) THE
 RULE MAXIMIZES THE NET BENEFITS TO  SOCIETY  AND  IS  THE  LEAST  COSTLY
 ALTERNATIVE, AND THE MAXIMUM BENEFITS AND MINIMUM COSTS HAVE BEEN CLEAR-
 LY IDENTIFIED BY THE COUNCIL.
   2.  THE COUNCIL SHALL CONSIST OF THE FOLLOWING SIX VOTING MEMBERS: THE
 GOVERNOR, THE COMPTROLLER, THE SPEAKER OF  THE  ASSEMBLY,  THE  MINORITY
 LEADER  OF  THE  ASSEMBLY, THE TEMPORARY PRESIDENT OF THE SENATE AND THE
 MINORITY LEADER OF THE SENATE, OR THEIR DESIGNATED  REPRESENTATIVE.  THE
 MEMBERS  OF THE COUNCIL OR THEIR DESIGNATED REPRESENTATIVE SHALL RECEIVE
 NO COMPENSATION FOR THEIR SERVICES. FOUR MEMBERS OF  THE  COUNCIL  SHALL
 CONSTITUTE  A  QUORUM  AND  THE  AFFIRMATIVE VOTE OF THE MAJORITY OF THE
 WHOLE COUNCIL SHALL BE NECESSARY FOR THE TRANSACTION OF ANY BUSINESS  OR
 THE  EXERCISE  OF  ANY  POWER  OF THE COUNCIL. THE COUNCIL SHALL MEET AT
 LEAST ONCE EVERY MONTH BUT SHALL MEET FIRST WITHIN  SEVEN  DAYS  OF  THE
 BEGINNING OF EVERY MONTH TO CONDUCT ITS BUSINESS.
   3.  EACH  STATE  AGENCY PROPOSING A RULE SHALL SUBMIT THE FOLLOWING TO
 THE COUNCIL IN ORDER FOR THE COUNCIL TO  TAKE  ACTION  ON  THE  AGENCY'S
 PROPOSAL:
   (A)  A  STATEMENT CITING THE STATUTORY AUTHORITY, INCLUDING PARTICULAR
 SECTIONS AND SUBDIVISIONS OF LAW, UNDER WHICH THE ACTION WILL BE TAKEN;
   (B) THE EXPRESS TERMS OF SUCH PROPOSED ACTION IN TWO THOUSAND WORDS OR
 LESS;
   (C) A REGULATORY  IMPACT  STATEMENT  AS  REQUIRED  UNDER  SECTION  TWO
 HUNDRED TWO-A OF THIS ARTICLE;
   (D)  THE  ANTICIPATED  EFFECTIVE  DATE OF THE NEW, AMENDED OR REPEALED
 RULE;
   (E) THE NAME, PUBLIC OFFICE ADDRESS AND TELEPHONE NUMBER OF THE AGENCY
 REPRESENTATIVE FROM WHOM THE EXPRESS TERMS OF THE ACTION AND ANY REGULA-
 TORY IMPACT STATEMENT MAY BE OBTAINED;
   (F) A TRANSCRIPT OF THE PUBLIC HEARINGS  HELD  ON  THE  PROPOSED  RULE
 CHANGE REQUIRED UNDER SECTION TWO HUNDRED TWO OF THIS ARTICLE AS WELL AS
 THE  NAMES, ADDRESSES AND PHONE NUMBERS OF ALL INDIVIDUALS WHO TESTIFIED
 AT SUCH HEARINGS;
   (G) A STATEMENT OUTLINING THE DETERMINATION MADE BY THE AGENCY PROPOS-
 ING THE RULE THAT THE PROPOSED RULE  IS  CLEARLY  WITHIN  THE  AUTHORITY
 DELEGATED BY LAW AND CONSISTENT WITH THE LEGISLATIVE INTENT; AND
   (H) A STATEMENT OUTLINING THE DETERMINATION MADE BY THE AGENCY PROPOS-
 ING  THE  RULE THAT THE FACTUAL CONCLUSIONS UPON WHICH THE RULE IS BASED
 HAVE SUBSTANTIAL SUPPORT IN THE AGENCY RECORD, VIEWED AS A  WHOLE,  WITH
 FULL ATTENTION TO PUBLIC COMMENTS IN GENERAL AND THE COMMENTS OF PERSONS
 DIRECTLY AFFECTED BY THE RULE IN PARTICULAR.
   4. IN ADDITION TO THE POWERS SET FORTH IN THE OTHER PROVISIONS OF THIS
 SECTION, THE COUNCIL SHALL HAVE THE FOLLOWING POWERS TO:
   (A) REQUIRE ANY STATE OFFICER, OR THE HEAD OF ANY DEPARTMENT, DIVISION
 OR  BUREAU  THEREOF,  TO FURNISH SUCH DATA, INFORMATION OR STATEMENTS AS
 MAY BE NECESSARY FOR THE COUNCIL TO CONDUCT ITS BUSINESS;
   (B) TAKE AND HEAR PROOFS AND TESTIMONY FROM INDIVIDUALS IN THE  PUBLIC
 AND  PRIVATE SECTOR, SUBPOENA AND COMPEL THE ATTENDANCE OF WITNESSES AND
 COMPEL THE PRODUCTION OF BOOKS, PAPERS, RECORDS AND DOCUMENTS;
   (C) ESTABLISH A COMPLAINT PROCEDURE FOR DETERMINING ENFORCEMENT ACTIV-
 ITIES THAT MAY CAUSE ECONOMIC,  FINANCIAL  OR  OTHER  HARM  TO  ENTITIES
 AFFECTED  BY  EXISTING  OR  PROPOSED RULES. IN ADDITION, THE COUNCIL MAY

 A. 4585                             4
 
 PROVIDE RECOMMENDATIONS TO AGENCIES FOR CHANGING SUCH ENFORCEMENT PROCE-
 DURES;
   (D)  PREPARE  AND  PROMULGATE UNIFORM STANDARDS FOR THE DEVELOPMENT OF
 REGULATORY IMPACT STATEMENTS REQUIRED PURSUANT TO THIS ARTICLE;
   (E) IDENTIFY DUPLICATIVE, OVERLAPPING AND CONFLICTING RULES,  EXISTING
 OR  PROPOSED,  AND EXISTING OR PROPOSED RULES THAT ARE INCONSISTENT WITH
 THE POLICIES UNDERLYING STATUTES GOVERNING AGENCIES OTHER THAN THE ISSU-
 ING AGENCY AND, IN SUCH CASES, REQUIRE APPROPRIATE INTERAGENCY CONSULTA-
 TION TO MINIMIZE OR ELIMINATE SUCH DUPLICATION, OVERLAP OR CONFLICT;
   (F) DEVELOP PROCEDURES FOR ESTIMATING THE ANNUAL BENEFITS AND COSTS OF
 AGENCY REGULATIONS, ON BOTH AN  AGGREGATE  AND  ECONOMIC  OR  INDUSTRIAL
 SECTOR BASIS, FOR PURPOSES OF COMPILING A REGULATORY BUDGET; AND
   (G) MONITOR AGENCY COMPLIANCE WITH THE REQUIREMENTS OF THIS SECTION.
   5.  ANNUALLY,  AFTER  JANUARY FIFTEENTH AND BEFORE FEBRUARY FIFTEENTH,
 COMMENCING TWO THOUSAND TWENTY-ONE, THE COUNCIL SHALL PUBLISH AN  ANNUAL
 REPORT  REGARDING  THE  ACTIONS  TAKEN  BY  THE COUNCIL DURING THE PRIOR
 CALENDAR YEAR. SUCH REPORT SHALL INCLUDE SPECIFIC DETAILS CONCERNING NEW
 OR AMENDED RULES AND  REGULATIONS  PROPOSED  TO  THE  COUNCIL  AND  WHAT
 ACTIONS  WERE TAKEN BY THE COUNCIL ON SUCH NEW OR AMENDED RULES OR REGU-
 LATIONS.
   § 3. This act shall take effect immediately, and shall apply to  rules
 and  regulations  proposed  to be added, amended or repealed on or after
 such effective date.